The huge crypto exchange Binance has been trying to take over the assets of the bankrupt Voyager for some time now . The necessary obstacles have been overcome, but the problems seem to arise again. The Department of Justice (DOJ), the US Department of Justice, wants to put a stop to the takeover.
Another hurdle for Binance
According to the DOJ, the acquisition would result in a situation where Voyager and its personnel could no longer be held responsible for past crimes.
“Nothing in the bankruptcy laws authorizes courts to exclude parties from liability for past and future crimes.”
In a statement on Tuesday, the DOJ said it would halt the acquisition until legal concerns are clarified.
A few weeks ago, the American financial watchdog, the Security and Exchange Commission (SEC), also objected to the takeover . According to the SEC, part of the acquisition, the VGX tokens, qualifies as an unregistered security.
In the lawsuit between Binance and the SEC, the SEC did not get the judge’s right. The judge found that the SEC’s objections did not outweigh the importance of the acquisition to creditors.
DOJ is busy
The US financial authorities are having a busy week. On Tuesday it was also announced that the DOJ has launched an official investigation into the Silicon Valley Bank (SVB). The bank closed its doors last week after it was announced that the bank was facing major liquidity problems. Startled investors massively withdrew their capital.
It now seems that a lot has gone wrong behind the scenes at the bank. For example, executives at the bank would have been aware of the problems and would have concealed this. Also, the executives sold a bunch of shares of their company in the run-up to the demise.
All in all, enough reason for the DOJ to investigate how things could have gone so wrong, and what the role of the executives was.